Geographically dispersed ownership and inter-market stock price arbitrage - Ahold's crisis of corporate governance and its implications for global standards

Journal of Economic Geography

Volumn 6, Issue 3, 2006, Pages 303-322

  Clark, Gordon L ^a,b   Wójcik, Dariusz ^c   Bauer, Rob ^d  

^a UNIVERSITY OF OXFORD   (United Kingdom)

^b HARVARD LAW SCHOOL   (United States)

^c UNIVERSITY OF OXFORD   (United Kingdom)

^d MAASTRICHT UNIVERSITY   (Netherlands)

Author keywords

Cross listing; Institutional investors; Inter market arbitrage; Standards of corporate governance

Indexed keywords

ECONOMIC RELATIONS; FINANCIAL CRISIS; INTERNATIONAL TRADE; INVESTMENT; STANDARD (REGULATION); STOCK MARKET;

AMSTERDAM; BENELUX; EURASIA; EUROPE; NETHERLANDS; NEW YORK [UNITED STATES]; NORTH AMERICA; NORTH HOLLAND; UNITED STATES; WESTERN EUROPE;

EID: 33744807761     PISSN: 14682702     EISSN: 14682710     Source Type: Journal    
DOI: 10.1093/jeg/lbi018     Document Type: Article

References (52)

1. Ahold (2004) Annual Report 2003. http://www.shareholder.com/visitors.
2. Bacidore, J. M., Sofianos, G. (2002) Liquidity provision and specialist trading in NYSE-listed non-US stocks. Journal of Financial Economics, 63: 133-158.
3. Bauer, R., Günster, N., Otten, R. (2004) Empirical evidence on corporate governance in Europe: The effect on stock returns, firm value and performance. Journal of Asset Management, 5: 91-104.
4. Becht, M., Bolton, P., Röell, A. (2004) Corporate governance and control. In G. M. Constantinides, M. Harris and R. M. Stulz (eds) Handbook of the Economics of Finance: Volume 1A Corporate Finance. Amsterdam: Elsevier.
5. Broekstra, G., Sornette, D., Zhou, W.-X. (2004) Bubble, critical zone and the crash of Royal Ahold. http://www.ssrn.com.
6. Brown, L. D., Caylor, M. L. (2004) The correlation between corporate governance and corporate performance. Washington DC: Institutional Shareholder Services.
7. Citibank (2004) Citigroup finds ADR capital raising surges in 2nd half of 2003. http://www.citibank.com/corpbank/securities/pressreleases/ 2003_1217.pdf.
8. Clark, G. L. (2005) Money flows like mercury: An economic geography of global finance. Geografiska Annaler B, 87: 99-112.
9. Clark, G. L., Hebb, T. (2004) Pension fund corporate engagement: The fifth stage of capitalism. Relations Industrielles/Industrial Relations, 59: 142-171.
10. Clark, G. L., Hebb, T. (2005) Why should they care? The role of institutional investors in the market for corporate global responsibility. Environment and Planning A, 37: 2015-2031.
11. Clark, G. L., Wójcik, D. (2003) An economic geography of global finance: Ownership concentration and stock-price volatility in German firms and regions. Annals, Association of American Geographers, 93: 909-924.
12. Clark, G. L., Wójcik, D. (2005) Path dependence and the alchemy of finance: The economic geography of the German model, 1997-2003. Environment and Planning A, 37: 1769-1791.
13. Coe, N. (2004) The internationalisation/globalisation of retailing: towards an economic-geographical research agenda. Environment and Planning A, 36: 1571-1594.
14. Coffee, J. C. (2003) What caused Enron? A capsule social and economic history over the 1990s. http://www.ssrn.com (abstract 373581).
15. Currah, P., Wrigley, N. (2004) Networks of organizational learning and adaptation in retail TNCs. Global Networks, 4: 1-23.
16. Dore, R. (2000) Stock Market Capitalism: Welfare Capitalism. Japan and Germany versus the Anglo-Saxons. Oxford: Oxford University Press.
17. Doremus, P., Keller, W. W., Pauly, L. W., Reich, S. (eds) (1998) The Myth of the Global Corporation. Princeton: Princeton University Press.
18. Eun, C., Sabherval, S. (2003) Cross-border listings and price discovery: evidence from US-listed Canadian stocks. Journal of Finance, 58: 549-574.
19. Fernandez, P., Villanueva, A. (2004) Shareholder value creation in Europe. EuroStoxx50, 1997-2003. Madrid: IESE Business School, http://www.ssrn.com.
20. Foufoula-Georgiou, E., Kumar, P. (eds) (1995) Wavelets in Geophysics. New York: Academic Press.
21. FTSE (2004) Ground rules for the management of the FTSE Eurotop 100, FTSE Euro 100, FTSE Eurotop 300, FTSE EuroMid Indices. http://www.ftse.com.
22. Goldstein, M. A., Kavajecz, K. A. (2004) Trading strategies during circuit breakers and extreme market movements. Journal of Financial Markets, 7: 301-333.
23. Gompers, P. A., Ishii, J. L., Metrick, A. (2003) Corporate governance and equity prices. Quarterly Journal of Economics, 118: 107-155.
24. Gordon, J. (2003) Governance failures of the Enron board and the new information order of Sarbanes-Oxley. http://www.ssrn.com (abstract 391363).
25. Granger, C. W. J. (1969) Investigating causal relations by econometric methods and cross-spectral methods. Econometrica, 34: 424-438.
26. Grammig, J., Melvin, M., Schlag, C. (2005) Price discovery in international equity trading. Journal of Empirical Finance, 12: 139-164
27. Halling, M., Pagano, M., Randl, O., Zechner, J. (2004) Where is the market? Evidence from cross-listing. Mimeo, Vienna: University of Vienna.
28. Hawley, J. P. Williams, A. T. (2005) Shifting ground: Global corporate governance standards and the rise of fiduciary capitalism. Environment and Planning A, 37: 1995-2013.
29. Hebb, T. (2006) The economic inefficiency of secrecy: Pension fund investors' corporate transparency concerns. Journal of Business Ethics (forthcoming).
30. Hebb, T., Wójcik, D. (2005) Global standards and emerging markets: the institutional investment value chain and CalPERS' investment strategy. Environment and Planning A 37: 1955-1974.
31. Hedvall, K., Liljeblom, E., Nummelin, K. (1997) Dual listing and price discovery: The role of the domestic market. Working Paper 355. Stockholm: Swedish School of Economics and Business Administration.
32. Hupperets, E. C. J., Menkveld, A. J. (2002) Intraday analysis of market integration: Dutch blue chips traded in Amsterdam and New York. Journal of Financial Markets, 5: 57-82.
33. de Jong, A., De Jong, D., Merlens, G., Roosenboom, P. (2005) Royal Ahold: A failure of corporate governance. Mimeo, Rotterdam: Department of Financial management, Erasmus University
34. Larcker, D. F., Richardson, S. A., Tuna, I. (2004) Does corporate governance really matter? Mimeo, Philadelphia: Wharton School, University of Pennsylvania.
35. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R. (1997) Legal determinants of external finance. Journal of Finance, 52: 1131-1150.
36. La Porta, R., Lopez-de-Silanes, F., Shleifer, A., Vishny, R. (1998) Law and finance. Journal of Political Economy, 106: 113-155.
37. Litterman, B. and the Quantitative Resoures Group, Goldman Sachs. (2003) Modern Investment Management. New York: Wiley.
38. Mankiw, N. G., Romer, D., Shapiro, M. D. (1991) Stock market forecastability and volatility: A statistical appraisal. Review of Economic Studies, 58: 455-477.
39. Melis, A. (2003) Corporate governance failures. To what extent is Parmalat a particularly Italian case. http://www.ssrn.com (abstract 563223).
40. O'Brien, R. (1992) Global Financial Integration: The End of Geography. London: Pinter.
41. Pagano, M., Roell, A. (1991) Dually-traded Italian equities: London versus Milan. Discussion Paper 564. London: Centre for Economic Policy Research.
42. Roe, M. (1994) Weak Owners, Strong Managers. Princeton: Princeton University Press.
43. Sidak, J. G. (2003) The failure of good intentions: The WorldCom fraud and the collapse of American Telecommunications after deregulation. Yale Journal on Regulation, 20: 207.
44. Stulz, R. (1999) Globalization of equity markets and the cost of capital. Working Paper. Columbus OH: Ohio State University.
45. Stulz, R. (2005) The limits to globalization. Journal of Finance, 60: 1595-1638.
46. Torrence, C., Compo, G. P. (1998) A practical guide to wavelet analysis. Bulletin of the American Meteorological Society, 79: 61-78.
47. Wang, B., Wang, Y. (1996) Temporal structure of the Southern Oscillation as revealed by waveform and wavelet analysis. Journal of Climate, 9: 1586-1598.
48. Wilhelm, W. J., Downing, J. D. (2001) Information Markets. Boston MA: Harvard Business School Press.
49. Wójcik, D., Clark, G. L., Bauer, R. (2004) Corporate governance and cross-listing: Evidence from European companies. Working Paper 04-24. Oxford: School of Geography and the Environment, University of Oxford.
50. Wrigley, N. (2000) The globalization of retail capital: Themes for economic geography. In G. L Clark, M. P. Feldman and M. J. Gertler (eds) Oxford Handbook of Economic Geography. Oxford: Oxford University Press, 292-313.
51. Wrigley, N. Currah, P. (2003) The stresses of retail internationalisation: Lessons from Royal Ahold's experience in Latin America. International Review of Retail, Distribution and Consumer Research, 13: 221-243.
52. Wrigley, N., Coe, N. M. and Currah, A. D. (2005) Globalizing retail: conceptualising the distribution-based TNC. Progress in Human Geography, 29: 437-457.